My overall Utilization is currently at 9% Am I likely to see any score increase from the one card that is reporting 95% of that 9% dropping to a 0 balance? The utilization on that particular card is currently about 51%.
From my data no, but my file may not be the same as yours. That assumes that a 9% to 1% give or take change in utilization isn't material on your file and that the zeroing of the additional acount doesn't push you over a number of tradelines w/balances breakpoint, which it might well without knowing anything else about your file; however, I had to get tradelines substantially higher than 60% on individual utilization to give me any movement on anything other than number of tradelines with balances calculations.
I never did figure out the breakpoints but I got a 67% utilization report and no change. I had an outstanding payment of 2.9k which accepted JCB (hey bonus!) so I threw it on the 3K tradeline so will see what that does to my score again for a clear maxxed tradeline but with minimal aggregate (<3%).
@Bankrupt2019 wrote:My overall Utilization is currently at 9% Am I likely to see any score increase from the one card that is reporting 95% of that 9% dropping to a 0 balance? The utilization on that particular card is currently about 51%.
I suspect you will see an increase in score but no guarantees as impact of individual card utilization is scorecard dependent. That being said numerous posters have reported seeing scores go up when a card went from over 50% utilization to under 50%. So it certainly appears there is a threshold at 50% [whether or not that impacts your profile is TBD]. Some suggest seeing a benefit on an individual card basis at under 30%. Test it yourself and report back.
As Revelate said, aggregate utilization all cards combined carrier much greater weight on scoring than does per card utilization [unless the card is maxed our, max out = 90% or above].
Pasted below is a chart from a Fico presentation relating risk to aggregate utilization. The increments are not necessarily scoring thresholds but they do help illustrate why factors are binned. [Note: One poster, Inverse, tested different levels of low AG UT% and reported getting a few points when dropping from the 8% - 9% range to the 4% - 6% range].
http://www.car.org/media/pdf/Back_to_Basics_FICO_Myths_Debunked.pdf
@Bankrupt2019 wrote:My overall Utilization is currently at 9% Am I likely to see any score increase from the one card that is reporting 95% of that 9% dropping to a 0 balance? The utilization on that particular card is currently about 51%.
Yes you are likely to see a score benefit.
Thanks guys, I'll report back when everything updates. This month I'll drop this card down to under 9% and keep a second card with a small balance.Then next month I'll go with 1 card reporting a balance of less than 9%. It's so fun to play with credit when you don't have any need for it. It sure is nice making money back from everyday expenses though.
@Thomas_Thumb wrote:
@Bankrupt2019 wrote:My overall Utilization is currently at 9% Am I likely to see any score increase from the one card that is reporting 95% of that 9% dropping to a 0 balance? The utilization on that particular card is currently about 51%.
I suspect you will see an increase in score but no guarantees as impact of individual card utilization is scorecard dependent. That being said numerous posters have reported seeing scores go up when a card went from over 50% utilization to under 50%. So it certainly appears there is a threshold at 50% [whether or not that impacts your profile is TBD]. Some suggest seeing a benefit on an individual card basis at under 30%. Test it yourself and report back.
As Revelate said, aggregate utilization all cards combined carrier much greater weight on scoring than does per card utilization [unless the card is maxed our, max out = 90% or above].
Pasted below is a chart from a Fico presentation relating risk to aggregate utilization. The increments are not necessarily scoring thresholds but they do help illustrate why factors are binned. [Note: One poster, Inverse, tested different levels of low AG UT% and reported getting a few points when dropping from the 8% - 9% range to the 4% - 6% range].
http://www.car.org/media/pdf/Back_to_Basics_FICO_Myths_Debunked.pdf
Nice find and an interesting presentation. I love this slide:
Balance on that card updated to $20 from $1209 (damn pending charge). I got 1 point. lol